Phoenix Venture Holdings bosses have been denied access to records of conversations between the Government and City bank Rothschild's which they say could shed new light on the collapse of Longbridge.

Chairman John Towers and other Phoenix directors used the Freedom of Information Act to try to obtain details of talks between the Department of Trade and Industry and the bank.

But they claim they were denied access to conversations they regard as vitally important.

The new Act allows Government bodies to reject requests for information regarded as confidential or, for commercial reasons, not in the public interest to disclose.

It is understood that Mr Towers and his colleagues are pressing for further details of Rothschild's alleged role in the demise of MG Rover to be made public at the forthcoming Trade and Industry Select Committee inquiry.